‘Sell or Short’ Hewlett-Packard, Peter Misek Says

Thursday, 27 Sep 2012 | 12:39 PM ET

Taking into account the headwinds facing the PC industry, it’s time to sell or short Hewlett-Packard shares, Jeffries Managing Director Peter Misek said Thursday on CNBC.

Slowing demand for PCs and excess inventories, the failure of Microsoft Windows 8 as a catalyst and tablet cannibalization are to blame, he said on “Fast Money.”

'Sell or Short' Hewlett-Packard: Peter Misek
Hewlett-Packard faces large headwinds, leading to a downgrade from Jeffries Managing Director Peter Misek.

(Read More: Microsoft Facing Harsh Headwinds: Dan Niles)

Misek said he expected the company to enter the tablet market — to little success.

(Read More: Citi Analyst Predicts ‘Worst 3Q Ever in PC History’)

“We expect them to waste another $5 to $10 billion there,” he said. “And frankly, their strategy is going to be: Use Android and to copy Apple design because that has worked for everyone else.”

(Read More: Apple Dip Offers ‘Great Opportunity’: Mike Murphy)

Tablet users, Misek added, are using computer printers an estimated 25 percent to 75 percent less — spelling trouble for the company’s hardware sales.

(Read More: Gains Ahead for 3 Internet Giants: Simon Baker)

“We think it is a short,” he said. “Frankly, we think this price is too high, and we’d want people to sell or short the stock here.”

Trader disclosure: On Sept. 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Steve Weiss is long TOT; Steve Weiss is long HK; Steve Weiss is long QCOM; Steve Weiss is long AIG; Steve Weiss is long M; Steve Weiss is long WLP; Steve Weiss is long VZ; Steve Weiss is long VOD; Steve Weiss is long T; Steve Weiss is long CLNY; Steve Weiss is long AMTG; Steve Weiss is long MTGE; Steve Weiss is long BAC; Steve Weiss is long EUO; Steve Weiss is short VALE; Steve Weiss is short BHP; Steve Weiss is short RIO; Steve Weiss is short GOOG PUTS; Steve Weiss is short AAPL PUTS; Steve Weiss is short AKS; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long SBUX; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in YHOO; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in GOOG; Jon Najarian is long call spreads in HLF; Jon Najarian is long call spreads in DECK; Jon Najarian is long call spreads in TEX; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Mike Murphy is long AAPL; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long TWI.

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